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The mixture of clay, sand, and bitumen that you mention is normally known as tar sand, and there are large deposits of it in the Canadian province of Alberta, as well as a few other locations. The bitumen can be extracted from the mixture and can then be refined into petroleum products such as gasoline, etc. This is more expensive than using oil from oil wells, however, in a world of very high and ever increasing oil prices, the exploitation of tar sands has become economically viable.

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